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17 Cards in this Set
- Front
- Back
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Are stocks community property?
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Cash dividends on separately held stock are income, and therefore, will be classified as community property if paid during the marriage. However, stock dividends or stock splits are considered an increase in value of the underlyling stock and are classified as separate property if the stock is separately held. This includes almost any other increase in value of stock.
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Are profits generated by spousal efforts in an incorporated business during the marriage constitute community property?
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No. Until they have been distributed, such retained earnings belong to the corporation. When that corporation is held as separate property, the retained earnings and all the appreciated value of the business remain separate property. By incorporating a separately owned business, a spouse can substantially subvert the community property system of classification.
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Will a divorce decree change the assets that a creditor may reach to satisfy the payment of an obligation?
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No.
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Is the community property subject to a spouse's sole or joint management, control and disposition also subject to the liabilities incurred by the spouse before or during marriage?
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Yes.
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Is community property subject to tortious liability of either spouse?
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Yes, all of it is if it is incurred during marriage.
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Are a creditor's rights extinguished by divorce?
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Yes, a creditor can reach any assets after divorce that could have been reached during the marriage, subject to the rules governing contractual and tortious liability.
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Does coversion affect the rights of a preexisting creditor of the spouse whose seperate property is being converted?
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No.
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How does community property pass if all surviving children and descendants of the deceased spouse are also children or descendants of the surviving spouse?
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It will all pass to the surviving spouse.
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Do all of the debts from community property also pass to the surviving spouse?
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Yes.
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What can the surviving spouse do when the deceased spouse dies leaving any community property?
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The survivor may at any time after letters testamentary or of administration have been granted, and an inventory, appraisement, and list of the claims of the estate have been retured, make application in writing to the court which granted such letters for a partition of such community property.
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When the court places a lien on the separate property of one spouse to secure the discharge of payments by the owner of that property to the other spouse, does that result in divestiture of the spouse's title to the separate property?
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No.
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What is the exception to the "corporation is separate property" rule?
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If the owner of a separate corporation spends more than a reasonable amount of time maintaining and improving his business, the proper remedy in TX is not to award the community some ownership interest in the business, but to give the community a right of reimbursement.
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Does passive appreciate of a corporation due to market fluctuations, inflation, or other fortuitious circumstances belong to the separate property?
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Yes.
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Who has the power of sole management, control and disposition of separate property?
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The spouse that owns that separate property.
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What about when the separate marital property of the two spouses is mixed?
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The combined community property becomes joint management community property, unless the spouses provide otherwise. As such, both spouses must join in the transaction to convey the property.
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What is the presumption when community property is held in one spouse's name only?
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The property is sole-management community property. This presumption protects third parties who rely on the spouse's authority to deal with the property if the party dealing with the spouse is not a party to a fraud on the other spouse or another person and does not have actual or construtive notice of the spouse's lack of authority.
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Under whose control is property that was separate but is converted into community property?
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Generally it is subject to the sole management, control and disposition of the spouse who transferred the property if the property is not subject to evidence of ownership.
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